Praised by Joe Biden last year, this Aussie CEO has been ousted from the company she founded

Just less than a year ago, Sydney-based entrepreneur Kristy Carr was enjoying praise from US President Joe Biden regarding Bubs Australia, an infant-formula brand.

I’ve got more good news: 27.5 million bottles of safe infant formula manufactured by Bubs Australia are coming to the United States.

We’re doing everything in our power to get more formula on shelves as soon as possible.

— President Biden (@POTUS) May 27, 2022

But things have changed significantly in recent months, with Carr forced out of the CEO position of the company she founded, and the board saying its decision stems from Carr’s failure to “comply with reasonable board directions.”

The board shared its decision with the ASX on Wednesday, noting that Richard Paine will replace Carr as interim CEO until a new permanent CEO is appointed.

Worse, the Australian Financial Review reports today that Carr is believed to have learned she was fired just as the ASX statement was published on Wednesday. The AFR also reports that Carr’s immediate termination means she is not entitled to a payout or form of gardening leave.

Carr founded the infant formula company in 2005. The company has experienced massive appeal internationally, due to Chinese demand for the product as well as shortages of infant formula in the US market last year — which saw President Biden talking up Carr and the Australian business on Twitter. Biden proudly said 27.5 million bottles of safe infant formula manufactured by Bubs would be arriving in the US, sharing the “good news” following shortage concerns.

Just five months ago, Bubs Australia was named the 2022 Australian Exporter of the Year by the Australia Trade and Investment Commission.

According to the statement titled “CEO termination”, the board saw the “time was right for a change in leadership and to change the governance framework of the company” following a “recent deterioration in Bubs’ financial performance over the half year.”

The statement also read that a strategic review of the company’s global business with a focus on expenditure management and the Chinese market is on track to be completed by 30 June 2023. This review was announced on April 28 this year.

The ousting comes after some big changes at the company in recent months involving the board, including Katrina Rathie being elected as chair, replacing former executive chair Dennis Lim. Lim has also been terminated from the company this week according to the ASX statement, effective immediately, after previously serving in the Chair position for almost six years.

Carr has been on personal leave since Rathie took over as Chair. Last month she posted to LinkedIn that Lim was the “smartest, most strategic person I’ve ever met”.

Carr said she “100 percent” stood by the former executive chair, noting that he has been a mentor to her as well as to other team members.

Newly elected chair Rathie had few words of thanks for Carr in the ASX statement, with a single line quote: “We acknowledge Kristy’s long service to Bubs and the role she has played in building the brand to the position it enjoys today.”

There were more thanks for the interim CEO Richard Paine, with the board thanking him for his “continued strong performance as Bubs’ interim CEO.”

Katrina Rathie is the sole woman on the five-person board at Bubs Australia.

Carr’s business story, as we wrote about in June 2022, is a classic case of a founder experiencing a problem, and working to solve it. Carr saw a problem with poor food quality being offered in supermarkets after having a baby in 2005. She expressed horror at recognising only three or four of the ingredients in the baby food products available.

This article was first published by Women’s Agenda.